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The revitalization of Ethiopian higher education (HE) has been underway since the early 2000s. As well as the economic optimism evident in the ‘knowledge-driven poverty reduction’ discourse, social equity goals underscore the reform and expansion of the system. Notwithstanding the widening participation and the equity policy provisions put in place, the problem of inequality has persisted along the lines of ethnicity, gender, rurality and socio-economic background. This paper reviews major equity policy instruments and highlights the enduring inequalities in Ethiopian HE. It argues that this persistence is related in part to the ways in which the problem is represented in policy, and that redressing the problem necessitates framing inequality as capability deprivation rather than as issues of access and disparities in enrolment. [ABSTRACT FROM PUBLISHER]